A Study On Ingredient Branding Strategy Of HS Company

The majorities of industrial products manufacturers in China which are playing the role of manufacturer and processer in global industry chain are still limiting their competition advantage by cost-oriented strategy,and are simply engaged in OEM(Original Equipment Manufacturer)business model instead of building brand.The industrial competition grows increasingly intense with the global economic integration,and over-supply,aggravated competition and extensive marketing strategy has become the challenge and problem of Chinese B2 B market--food additive industry in recent years.Enterprises have to deliberate on the upgrade from cost-originated to brand-differentiated strategy.Based on the case study of HS Company in industrial product industry emphasizing technology innovation,this dissertation is focusing on the study on branding strategy problem of its single product “HS” Sucralose.“HS” Sucralose has gone through the brand development milestones of leading brand at primary stage and lacking brand at recessionary stage,while problem of decreasing sales volume and difficult market expansion occurred during brand building process since 2014.The purpose of this dissertation is to find out the cause and solution of sales and market problem on the basis of current business model and brand building status in the method of literature review and case study by analyzing the demands and trends,competition,product,customer and brand building.The cause of problem has been analyzed to be the fact that OEM business model has greatly weakened HS Company's Sucralose brand awareness and eroded the core competitiveness,which results in the vulnerability of HS Company in face of low-price challenge;due to the lack of branding strategy,the conflicts between distributors and manufacturers has caused the loss of distributors while the inefficient brand building cannot contribute to the business development with manufacturer customers.To solve this problem,the theory and literature review of co-branding and ingredient branding strategy has been integrated into the analysis to find out that HS Company is equipped with the conditions of implementing ingredient branding strategy.By implementing ingredient branding,HS Company can overcome the weakness of previous OEM business model,and develop its Company strength and product advantage in B2 B and B2 C market so as to increase its sales volume and expand market.It can be concluded from this dissertation that,enterprises in industrial product industry should value brand building and customize the appropriate branding strategy based on the analysis of its own advantage and disadvantage of product and enterprise as well as the external environment,so as to guild its brand building and marketing strategy executing,and fulfill its target of increasing sales volume and expanding market.